StopLoss Secures $5.75M Financing as Pensacola Sale Wins Approval
ElevenFlo Research
July 21, 202610 min read
Key points
StopLoss secured $5.75 million in debtor-in-possession financing and court approval to sell its Pensacola property while resolving an equipment-and-records dispute with Command 247.
StopLoss, LLC's own case, No. 26-50049, was docketed in the U.S. Bankruptcy Court for the Southern District of Texas (Houston Division) with an involuntary-petition date preserved at January 20, 2026 under the case's transfer agreement, and has been jointly administered before Judge Alfredo R. Perez with TM36, LLC and affiliated debtors, which filed voluntary chapter 11 petitions on March 5, 2026 under lead Case No. 26-90386. StopLoss Specialists, LLC, one of the jointly administered debtors, describes itself as an emergency-response and property-restoration provider with a network of offices that includes Houston, Tampa, and Panama City, Florida, near the Pensacola property later sold in the case. No plan of reorganization or disclosure statement had been filed as of the debtors' latest exclusivity extension.
StopLoss, LLC's docket reflects an involuntary origin distinct from the voluntary filing that brought in its affiliates. Creditors filed an involuntary chapter 11 petition against StopLoss, LLC on January 20, 2026 in the Western District of Louisiana, and the debtors answered the petition on February 11, 2026. The court entered an order for relief on March 12, 2026, before the case was transferred the following day to be administered alongside TM36, LLC and the other affiliated debtors that had filed voluntary petitions in the Southern District of Texas on March 5, 2026. As part of the transfer, the debtors agreed to preserve January 20, 2026 as StopLoss's petition date rather than a later transfer or order-for-relief date. The committee's counsel-retention application and other filings in the case continue to reference the joint-administration structure, with pleadings and orders filed under both the TM36 and StopLoss captions.
The debtors' exclusivity period ran without a filed plan through the first several months of the case. On June 10, 2026, the court extended the debtors' exclusive period to file a chapter 11 plan through September 1, 2026, and the exclusive solicitation period through November 2, 2026. No confirmed plan or disclosure statement had been filed as of the docket reviewed for this case.
DIP Financing and the Twelve Bridge Facility
The court entered a final order authorizing StopLoss and its co-debtors to obtain up to $5.75 million in secured postpetition financing from Twelve Bridge Capital, LLC and 431 KW, LLC, structured as multi-draw term loans with a $2 million interim draw authorized ahead of final approval. The facility carries a 5% commitment fee, a 3% funding fee, and a 2% exit fee, and grants the DIP lenders first-priority priming liens and superpriority claims against substantially all prepetition and postpetition estate property and proceeds, excluding avoidance actions but including their proceeds, subject to a $375,000 carve-out.
The carve-out reserves up to $50,000 for a potential chapter 7 trustee and, after a trigger notice, up to $250,000 for the debtors' professionals and $75,000 for the committee's professionals. Debtors may use DIP proceeds only for purposes permitted under the approved budget, and operating-expense disbursements are barred from deviating upward by more than 15% from that budget, with bi-weekly reporting and accounts-receivable collection updates required to the DIP lenders.
Capital Structure and the RLF Loan
The prepetition capital structure evidence extracted from the DIP order names two secured instruments without disclosing a complete funded-debt total. The RLF Loan is a first-lien facility secured by debtor equipment identified as "RLF Collateral" and perfected through UCC-1 filings against certain debtor entities; Recovery Logistics Finance, LLC appeared through counsel at the debtors' cash collateral and DIP hearings alongside Insured Advocacy Group, LLC and Insured Advocacy Group II, LLC. Separately, a Secured Convertible Note in the amount of $1,586,222.26 is secured by collateral pledged by StopLoss Specialists, LLC under the convertible loan documents. The reviewed filings do not state the RLF Loan's principal amount, so the combined funded-debt figure remains incomplete in the public record.
StopLoss, LLC's monthly operating report for the period ended May 31, 2026 shows the scale of the broader balance sheet: total assets of $9,747,916 against total liabilities of $27,451,201, producing negative equity of roughly $17.7 million. The same report listed opening cash of $1,068,307, current-period receipts of $970,000, disbursements of $850,702, and ending cash of $1,187,605, for a current-month net loss of $850,702.
Pensacola Property Sale to Blackhawk PCS
The court approved the sale of the Pensacola property on May 27, 2026, identifying Blackhawk PCS LLC as purchaser at a price of $2.25 million. The order authorized the sale partially free and clear of liens, claims, encumbrances, and interests under section 363(f), and included findings that the transaction and consideration were negotiated without collusion and in good faith under section 363(m), giving Blackhawk protection against a successful appeal unstaying the sale. The same order approved an assignment of claims from the Olinger parties as part of the transaction. The sale order itself does not break out separate line items for the purchase price allocation; the $2.25 million figure reflects the case's structured sale record rather than an itemized closing statement in the filed order.
Command 247 Turnover Fight and Appeal
A recurring dispute in the case centers on Command 247, LLC, an entity associated with Scott Butaud, and property located at a Broussard, Louisiana facility. Command 247 first sought relief from the automatic stay, which the court denied on May 4, 2026; Command 247 filed a notice of appeal of that denial on May 15, 2026. Days later, the debtors moved for turnover of equipment, vehicles, titles, and books and records from Command 247, Butaud, and Lauren Ashley Noel (also known as Lauren Ashley Segura), alleging that estate property and records remained at the Broussard location without full access.
Command 247 objected to the turnover motion on June 12, 2026, arguing it had already complied with a prior Rule 11 agreement, that several disputed items belonged to Butaud individually, his solely owned entity, or third parties rather than the estate, and that the court lacked jurisdiction to order access to the Broussard location because it is private property leased by a Butaud-owned entity rather than the debtors. The parties ultimately resolved the dispute through an agreed order entered July 6, 2026, which permits the debtors to inspect the Broussard and Opelousas locations during business hours and remove property and paper records they assert belong to the estates, while expressly declining to resolve the underlying ownership or title disputes and limiting access to private offices at the Broussard site.
In a separate contested matter, the debtors objected to the proof of claim filed by Insured Advocacy Group, LLC, disputing its validity, priority, and amount. Insured Advocacy Group and its affiliate, Insured Advocacy Group II, LLC, had also appeared as parties at the debtors' DIP financing hearing.
Committee Counsel and Professional Fee Requests
The U.S. Trustee appointed the Official Committee of Unsecured Creditors on April 24, 2026. The committee then selected Dykema Gossett PLLC as its counsel and sought to retain the firm effective April 30, 2026, with lead attorneys William Hotze, Michael Twomey, Jennifer Cruz, and Dominique Douglas billing at hourly rates ranging from $575 to $750. On the debtor side, Pablo Bonjour was retained as chief restructuring officer alongside Veritas Restructuring Group as financial advisor, and Porter Hedges LLP has served as the debtors' bankruptcy counsel; Susman Godfrey LLP was separately retained as special litigation counsel effective as of the petition date, and Kroll Restructuring Administration LLC serves as claims, noticing, and solicitation agent.
Involuntary chapter 11 petition filed against StopLoss, LLC in W.D. Louisiana; later preserved as StopLoss's petition date
Feb 11, 2026
StopLoss, LLC's involuntary chapter 11 case is answered
Mar 5, 2026
TM36, LLC and affiliated debtors file voluntary chapter 11 petitions
Mar 12-13, 2026
Order for relief entered; StopLoss case transferred for joint administration
Apr 24, 2026
Official Committee of Unsecured Creditors appointed
May 4, 2026
Court denies Command 247's motion for stay relief
May 14, 2026
Final DIP order entered, authorizing up to $5.75 million
May 27, 2026
Pensacola property sale to Blackhawk PCS LLC approved at $2.25 million
Jun 10, 2026
Exclusivity extended to September 1 (plan) and November 2 (solicitation)
Jul 6, 2026
Agreed order resolves Command 247 turnover and inspection dispute
Key Timeline
Frequently Asked Questions
Who is the claims agent for StopLoss, LLC?
Kroll Restructuring Administration LLC serves as claims, noticing, and solicitation agent for StopLoss, LLC and its jointly administered co-debtors, retained through an emergency ex parte application early in the case.
Has a chapter 11 plan been filed?
No. The debtors' exclusive period to file a plan was extended through September 1, 2026, and the exclusive solicitation period through November 2, 2026, with no plan or disclosure statement on file as of the docket reviewed for this case.
What happened to the Pensacola property?
The court approved its sale to Blackhawk PCS LLC for $2.25 million on May 27, 2026, free and clear of liens, claims, and encumbrances under section 363(f).
Why did StopLoss and Command 247 end up in court over equipment?
The debtors sought turnover of equipment, vehicles, and records they said remained at a Command 247-controlled facility in Broussard, Louisiana. Command 247 disputed estate ownership of several items and challenged the court's jurisdiction over the private property; the parties reached an agreed order in July 2026 permitting inspection and removal of estate-owned items without resolving the underlying ownership dispute.
Insured Advocacy Group's disputed claim against StopLoss is also headed to arbitration.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. Read our full disclaimer.
